Updated Guidance on the use of Debit, Credits and Smartcards

Revenue Ruling 2014-32 provides updated guidance on the use of smartcards, debit and credit cards to provide qualified transportation fringe benefits to employees.

Document Excerpt

 (1) Whether, under the facts described in Situations 1 through 5 and Situation 7 below, employer-provided transportation benefits provided through electronic media are excluded from gross income under §§ 132(a)(5) and 132(f) of the Internal Revenue Code (Code) and from wages for employment tax purposes.

(2) Whether, under the facts described in Situation 6 below, qualified transportation fringe benefits include delivery charges incurred by an employee in acquiring transit passes.

(3) Whether, under the facts described in Situation 8 below, qualified transportation fringe benefits can be provided through a bona fide reimbursement arrangement.

 

Link

http://www.irs.gov/pub/irs-drop/rr-14-32.pdf

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